The new year brings fresh beginnings, but for businesses, January isn’t just about resolutions; it’s also a month packed with important deadlines and reporting requirements. To avoid penalties and ensure smooth operations, staying informed and organized is crucial.
1. Beneficial Ownership Reporting Starts (January 1, 2024)
The most significant change for many businesses this year is the implementation of the Beneficial Ownership Information Reporting Rule. Starting January 1, 2024, most corporations, limited liability companies, and partnerships must electronically file reports disclosing information about their “beneficial owners” – individuals who ultimately own or control the entity. Companies formed before this date have until January 1, 2025, to file their initial reports, while newer entities have 30 days from formation. Don’t miss this important deadline; non-compliance can lead to substantial penalties.
2. Employer Tax Deadlines (January 16, 2024)
If you’re an employer subject to the monthly deposit rules, January 16th is your deadline to deposit Social Security, Medicare, and withheld income tax for December 2023. Remember, electronic deposits are mandatory (no paper coupons)! For non-payroll withholding deposits, the same deadline applies.
3. Farmers and Fishermen: Estimated Tax Due (January 16, 2024)
Farmers and fishermen operating as sole proprietors or independent contractors should pay their estimated tax for 2023 using Form 1040-ES by January 16th. Remember, failing to pay estimated taxes on time can result in penalties, so avoid the hassle and submit your payment before the deadline.
4. 1099-NECs and IRS Reporting (January 31, 2024)
Businesses and rental property owners who paid $600 or more to non-employee service providers in 2023 must provide them with Form 1099-NEC by January 31st. This covers various payments like independent contractor fees, commissions, and prize money. Copies of these forms must also be submitted to the IRS electronically by the same deadline to avoid penalties. Our firm can assist you with preparing and submitting 1099s efficiently.
5. Form 1098 and Other 1099s Due to Recipients (January 31, 2024)
January 31st is also the deadline for sending various 1099 forms to recipients, including Form 1098 (Mortgage Interest Statements) and other informational forms detailing income received in 2023. These may cover dividends, interest, rent, royalties, and other types of income. Ensure timely delivery of these forms to both recipients and the IRS, with paper copies due by February 28th or April 1st if filed electronically.
6. Employer W-2 Deadlines (January 31, 2024)
By January 31st, all employers must furnish copies of Form W-2 for 2023 to their employees. If electronic W-2s are the preferred option, ensure they’re uploaded and accessible to employees. Remember, copies for the Social Security Administration are also due by this date, electronically or by paper.
7. Form 941, Tax Deposits, and Filing (January 31, 2024)
The fourth quarter of 2023 wraps up in January, with Form 941 due for filing and any undeposited Social Security, Medicare, and withheld income tax requiring deposit. However, full and timely deposits grant you an extended filing deadline of February 12th.
8. Farm Employers: Form 943 and Filing (January 31, 2024)
Similar to Form 941, farm employers must file Form 943 to report Social Security, Medicare, and withheld income tax for 2023 by January 31st. Deposit any outstanding tax, but if fully deposited on time, filing can be delayed until February 12th.
9. W-2G for Gambling Winnings (January 31, 2024)
If you paid reportable gambling winnings or withheld income tax from them in 2023, provide winners with their copies of Form W-2G by January 31st.
10. Estimated Tax Payment Options for Individuals (January 31, 2024)
For individuals who missed their last estimated tax installment can choose, but aren’t required, to file their income tax return (Form 1040 or Form 1040-SR) for 2023 by January 31st. This avoids late payment penalties for the last installment. Even if you can’t meet this deadline, filing and paying by April 18th still minimizes potential penalties.
Remember: These are just some of the key deadlines and reporting requirements for businesses in January 2024. Staying organized and proactive are crucial to ensure smooth operations and avoid costly penalties. For expert guidance and assistance in navigating these complex deadlines and regulations, don’t hesitate to contact our team of experienced tax professionals. We can help you ensure compliance, avoid penalties, and streamline your tax reporting process.
In addition to the deadlines mentioned above, keep in mind:
- Weekends and Holidays: If a due date falls on a weekend or legal holiday, it’s automatically extended to the next business day.
- Disaster Area Extensions: If your area is declared a disaster zone, specific filing and payment deadlines may be extended. Check FEMA and IRS websites for updates.
By staying informed and taking proactive steps, businesses can navigate the busy month of January and set themselves up for a successful year ahead.
